State Senate eyes changes to school property taxes

Written by The Associated Press | Oct 15, 2013 9:01 AM
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(Harrisburg) -- The Pennsylvania Legislature's independent fiscal analysts say one plan to eliminate school property taxes would leave schools with less money.

The Independent Fiscal Office report was to be the subject of a Senate Finance Committee hearing Tuesday.

After two days of debate, the state House of Representatives passed a plan earlier this month to authorize local school boards to reduce or eliminate school property taxes by raising new levies on residents and businesses.

The related proposal analyzed by the Independent Fiscal Office was rejected by the House and has not received a Senate Finance Committee vote.

The plan would increase the personal income tax by 41 percent and boost the state sales tax to 7 percent, a 17 percent bump. It also would eliminate many existing sales-tax exemptions.

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